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  CNN    CNN Newsroom    News/Business. Latest on the day's top news stories  
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    January 2, 2013
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things by john boehner but he could have been right. democrats gave up a lot and they're going to be prime with giving up tax increases, the one thing they responded to about spending cuts for year so get ready for a lot of talk about spending cuts. >> anything to negotiate? >> i think spending cuts, reasonable democrats realize there have to be spending cuts. this is a new day, serious economic crisis. for 20 years we talked about for 20 years the republican party stood in the way of any meaningful tax increases and i think this was a big win for president obama and i do think the democrats acted responsibly. >> was it nice to wake up to this morning? >> the good thing also was that it was a compromise and the republicans were not, we didn't make the republicans, you know, pay for the entire election. >> let's leave with a smile on our face. thanks so much for being with us. you're all right yourself. >> thank you. victor blackwell with "cnn
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newsroom" continues. >> good morning, happening in "the newsroom" dodging the fiscal cliff crisis for now. with all of the talk about spending less why are lawmakers giving billions to businesses that are already thriving? we'll show you who is cashing in. party crashers, republicans split over the tax deal and the core values of the gop and that strained unity faces a bigger test as a new deadline looms over spending cuts. while the gop licks its wounds, wall street gets ready to celebrate. u.s. stocks set to open higher as markets around the world trade higher on the deal. and they told us to basically drop dead. that's how one new yorker is reportedly characterizing the house after ending the session without sending any sandy relief to the northeast. >> everybody played by the rules, except tonight, when the rug was pulled out from under us, inexcusable, indefensible.
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>> "newsroom" starts right now. good morning, i'm victor blackwell sitting in for carol costello. 11th hour drama, congress swerves away from the dreaded fiscal cliff, but on this morning after the enthusiasm is tepid at best and the anger is simmering. first your bottom line. no tax rate increase for more than 98% of americans, that is couples earning less than $450,000 a year. the middle class also gets relief from the alternative minimum tax. it will now be adjusted for inflation. and remember those massive spending cuts that could have plunged the country back into recession? yeah, well they're merely on hold for a couple of months. so lawmakers face even tougher decisions and dwindling patience from the public, and that includes some powerful voices in washington. check out this tweet from a leader of the tea party express,
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amy kremer says "i'm extremely disgusted with what happened in the house tonight. there will be consequences." we're covering all the angles and alison kosik shows us how investors are reacting to the crisis that has been avoided at least for now and christine romans gets out the magnifying glass and exposes some of the pet projects that are getting huge amounts of your tax dollars. so let's now take a look at some of the big winners contained in the fine print. first up, hollywood, $430 million in tax breaks to foster tv and film production in the u.s. also cashing in, railroads to the tune of $331 million. the tax credit is tied to maintenance of the tracks. puerto rico and the virgin islands, listen to this, they'll see more than $220 million in tax dollars returned, they were collected on rum produced there, and imported to the mainland. and that iconic american sport nascar racing will get a
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windfall of $70 million. christine romans is here to break it down for us. christine, these sorts of business incentives are not new, but what's the argument for providing them and putting them in this bill? >> well, i mean one man's pork is another man's job creator, right? the point here is that some of these are extenders, some of these are business sweeteners meant to help them continue to do business and to thrive and stay in this country. some of the film and tv productions staying in the united states got a tax break, for example, also a tax break for the area or special tax is it the us for areas around the world trade center site. as we always have in very big legislation and important legislation, these things get tucked in there because they guarantee easier passage and some of them quite frankly are just extended, they're just almost like carbon copy extenders of things we have done before that have been languishing this year without a budget so the fiscal cliff bill, like all legislation, packed
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with these goodies. there's one thing in there that the business community is very, very interested in and i'd like to point out that to you, extension of modification of bonus depreciation. businesses can write off immediately half the value of their new investments, known as the 50% bonus depreciation. this is something that got business people, raised their attention. listen to what ned riley had to say about this. >> businesses have been holding off and waiting for the uncertainty of the fiscal cliff. we saw a nice bonus depreciation thrown in this bill that i did not anticipate and i don't know how extensive it is yet but that hopefully will get capital goods spending moving along again. >> so one person could say that's pork and another person would say hey, wait, maybe that's going to do something to get business spending money and going to make them feel more -- so you can argue pork perks, tax sweeteners, whatever they are, they are in there. one thing that's not in there, no pork for congress, victor, because they will not get a cost
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of living adjustment to their pay. so they didn't get any pork, congress didn't. >> i think the concern for a lot of people, this is when we hear about the things, not in the discussion on the house floor but after it's passed and headed to the president to be signed. >> absolutely, and that's what's so confounding about pork in and of itself, the way it can get in there and the process and the dark of night, the way it does. no question. you go through the list, we're talking about how much money they generate or how much money they cost taxpayers but remember our tax code is full of thousands and thousands of pages of givebacks and giveaways and sweeteners and goodies, and economic incentives for certain kinds of behavior and certain kinds of business, that's the way the whole thing is set up, quite frankly. >> christine romans with the magnifying glass out for us this morning, thank you for that. we'll check back. the house adjourned last night without voting on a bill that would have sent billions of
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dollars to help superstorm sandy recovery efforts across the northeast. the senate approved a $60 billion bill last week but the house decided not to bring up any other legislation and that enraged house lawmakers from new york. >> everybody played by the rules, except tonight, when the rug was pulled out from under us, absolutely inexcusable, absolutely indefensible. we have a moral obligation to hold this vote, the people out of their homes, the people who are cold, without food, the people who have lost their jobs, they don't have the time to wait. >> disaster knows no boundaries. this body has acted with speed and compassion to help americans throughout the country and disaster after disaster, dysfunction, mr. speaker, in this congress, shouldn't result in punishing victims of sandy in new york, new jersey, connecticut and pennsylvania. this is a sad day. >> the delegations of those states are angry. the new congress starts
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tomorrow, and all bills start from scratch, but house appropriation chairman hal rogers is not concerned about quickly getting money to the area. the kentucky republican says the federal emergency management agency, fema, "has enough money to last until at least late february or march anyway." coming up in about 50 minutes congressman peter king will join know talk more about the inaction in the house on superstorm sandy relief. we may have avoided the fiscal cliff, but our paychecks will still feel that sting. the payroll tax holiday is now over, so in the new year, your wallet is getting squeezed. according to the tax policy center if you make $25,000 you're going to pay $42 extra a month. if you make $50,000 you'll lose about 83 bucks a month. 125 if you make 75 grand a year and if you make 100 grand you'll see 167 fewer dollars each month. on wall street the first day of
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trading of the new year starts less than 30 minutes from now and also the first day of trading after congress struck that deal on the fiscal cliff. markets are set to rally on this news. let's bring in alison kosik over on the floor of the new york stock exchange. alison what is the mood of traders? >> victor you can call it the fiscal cliff rally, call it whatever you want but it's going to be something that's big. when the market opens in less than a half an hour from now, we're expecting to see triple-digit gains on the dow, we're seeing markets overseas weighed in, asian markets up big, major averages in europe up over 2%. the bigger question, will this rally last? wall street is concerned the next chapter could be one. one bank of america analyst says the twin peaks are left for the new year meaning congress still has to deal with the issue of spending cuts which they pushed off for another two months and they've also got to deal with the debt ceiling and some analysts are predicting another credit rating downgrade if the
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debt ceiling negotiations get chaotic again. another analyst says this, with the debt ceiling negotiations in just 60 days, the smart money knows the bullish sentiment here will be short-lived, that the lesson for investors is buyer about he ware. victor? >> markets open 9:30 eastern. see you in about 20 minutes at the ringing of the bell. thank you. there may be no clear-cut winners in the fiscal cliff deal but both sides said they got less than they wanted. vice president joe biden brokered the deal with the minority leader mitch mcconnell and convinced fellow democrats to support it and biden's rising stature could be critical in the painful spending cut negotiations that loom down the road, just two months away. let's bring in white house correspondent brianna keilar and bring back business correspondent christine romans. brianna first to you, we're calling this the biden bump. does this have staying power? >> reporter: you know, it's hard
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to tell. i think that he definitely proved his worth in these negotiations that it seemed like they had really come to stall in the senate over the weekend, and he did step in to negotiate something with mitch mcconnell and did so somewhat expeditiously. he sometimes get criticized for saying, i guess could you say speaking truthfully sometimes and saying things perhaps that are not politically what he might want to say, but he proved that what he brings to the table is an institutional knowledge of congress and decades long relationships that really paid enough these negotiations, that he was obviously seen as a partner to be had with senate republicans on these negotiations because as you know, president obama was in the senate but he wasn't there very long and so that's something certainly that vice president biden has as an advantage over him, but really an advantage to the president since he was the proxy in these negotiations. >> christine that was part of
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the argument back in 2008 to put joe biden on the ticket, that he would be the liaison with capitol hill and he's been called for a couple of years the closer. >> he's going to need to close some more deals or someone will need to close more deals in the days and months ahead. we have more deadlines here. you have an automatic federal spending cuts pushed off for two months, you have a continuing budget resolution which has to be handled by the end of march and then you have the debt ceiling negotiations so you're seeing a congress here that needs some real closers and real leadership to try to figure out how to get over these very, very big important fiscal challenges ahead. you've heard a lot of people say we're out of this era of the grand bargain, the era of the grand bargain is dead. you'll have fist fights over narrow parts of legislation and that's going to mean all the political chaps of every person in congress will be tested over
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the next few months. >> we've got three big deals that will happen going into february and march. does it look like this will be the play for the white house as we move forward? are we going to start in the same place we started 11 months ago with the debt ceiling with boehner and the president trying and sending in joe biden at the last minute to close? >> reporter: i don't know if we're going to be seeing that. sternly the white house isn't saying that. we know we'll see drama over this. spending cuts were deferred for two months, the debt ceiling has to be dealt with. president obama wants to deal with long-term things that affect entitlements and tax reform and republicans want to see entitlement and tax reform as well so those things perhaps the negotiations, those things will be attached to the spending cuts and the debt ceiling which
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have this extreme deadline i guess you could say. i think the president was taking a different tack that we will see again. when he was negotiating with the debt feeliceiling i think he tro portray himself as the reasonable grownup in the room and this time we saw him take in the comments before the deal came to be he took a hard line against republicans. i think the white house felt that worked and i think we'll be seeing that again in these coming negotiations. >> the president also last night sa said he's not going to negotiate with congress on the u.s. paying its bills. we'll see if that happens. it's very unlikely that he will not have that argument. we'll see that in the next few months. breanianna keilar and christine romans we'll check back, thank you. chaos on a frozen lake when a sledder crashes through the ice, watch. and this is not the end of this, because one person after another
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16 after the hour. let's check top stories now. the coast guard says there's no sign of any leaks from an oil drill barge that was washed ashore on an alaskan island. the rig is carrying more than 150,000 gallons of fuel. ship was towing it to seattle when a powerful storm forced the crew to cut it free. the rig drifted ten hours before running aground. in business news, rental car company avis budget agrees to
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buy zip car for $500 million. if you're not familiar with zip car, this is a car sharing network. this deal could benefit customers who want a zip car on just the weekends maybe. shareholders still need to approve the deal. watch this, a man was sledding across a frozen lake when he fell through the ice and into the water. people are going to run over to try to save this guy, they scrambled but would-be rescuers then fell through the ice themselves, one by one. look. you see people here just slipping through the ice, it's thin everywhere. this happened christmas day in wrightwood, california, just west of l.a. can you imagine this? people on the shore tossed in ropes and inner tubes to help including the man and his wife who shot this video. >> i ran up to the car, got the rope, ran back down, uncoiled it, threw it out and coming seven feet short from getting the rope to the guy. at that point other people started running over the cargo
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straps tying them to the rope and they began throwing the rope and i ran up to the top of the hill and called 911. >> it took almost nine minutes but everyone was pulled to safety. officials say the lake will be closed until april. commercial spots for the super bowl are reportedly almost sold out and they're selling for more cash than ever before. cbs executive says there's only about two spots left maybe and 30-second slots sold for a record $3.8 million apiece, but some advertisers paid more because several commercials will be a minute or longer. back now to our top story of the morning, the narrowly avoided fiscal cliff, last night president obama declared victory on a campaign promise to raise taxes on the wealthiest americans but he made clear his distaste for the drama and
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partisan brinkmanship in this deal. >> while i will negotiate over many things, i will not have another debate with this congress over whether or not they should pay the bills that they've already wracked up through the laws that they passed. let me repeat, we can't not pay bills that we've already incurred. if congress refuses to give the united states government the ability to pay these bills on time, the consequences for the entire global economy would be catastrophic, far worse than the impact of a fiscal cliff. people will remember back in 2011 the last time this course of action was threatened, our entire recovery was put at risk, consumer confidence plunged, business investment plunged, the growth dropped. we can't go down that path again. >> while the president says that he won't negotiate, there is another battle brewing in
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washington, it's been tweeted the gop and its far right tea party members, republicans breaking ranks with their house majority leader eric cantor to vote for a plan, 85 house republicans voted for the deal, 151 republicans voted against the deal, including cantor, and that didn't sit well with the tea party. amy kremer tweeted this "i'm extremely disgusted with what happened in the house tonight. there will be consequences." and if you scan any of the big national paper this is morning, the headline might be that yes a deal was reached but how we got there is also making news. "the los angeles times" proclaimed "fiscal cliff plan clears house with gop divided." "the new york post" called it "leap of faith, gop breaks ranks to pass bill." jeff landry was on cnn's "early start" and acknowledged the party tension. >> we have to have a fight to
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determine what republicans actually stand for now. i think that what you saw november 6th was the fact that the republican establishment can't figure out what they stand for. >> over the next two months we could see a lot more political tension, that's for sure. the deal still has not addressed the debt ceiling fight. cnn has reached out to tea party express chairman amy kremer regarding her message on that but we have not yet heard back. fired for refusing flu shots. listen to this, the controversial call by an indiana hospital that has a lot of people angry. new prilosec otc wildberry is the same frequent heartburn treatment as prilosec otc. now with a fancy coating that gives you a burst of wildberry flavor. now why make a flavored heartburn pill? because this is america. and we don't just make things you want, we make things you didn't even know you wanted. like a spoon fork. spray cheese. and jeans made out of sweatpants. so grab yourself some new prilosec otc wildberry. [ male announcer ] one pill each morning. 24 hours. zero heartburn.
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consider this, should you be
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fired for not getting a flu shot? several health care workers in indiana are out of a job after saying no to the flu shots. the parent company of goshen hospital outside of south bend made flu shots mandatory. there are some exceptions for relingious and personal beliefs but not everyone was given a pass. sue shrox is a hospice nurse whose strong beliefs led her to skip the shot and now she's out of a job. >> i just feel like it's a toxin i don't want in my body, there are side effects with that. there are no guarantees it's going to protect you. >> the hospital says the health and safety of the patients is the top priority. elizabeth cohen is our senior medical correspondent. good to see you. >> good to see you. >> this nurse she treats some of the sickest patients and if they get the flu there could be some serious health consequences. >> right, if you or i get the flu it's unpleasant, we're out of work for a couple of days or maybe a week, we don't feel well but we're probably not going to
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die but when someone is that sick in the hospital or in a hospice, if they get the flu, they could die and in fact 36,000 people a year die from the flu, so it's a serious thing for these patients. >> so this hospital has this mandatory policy. is this becoming more common? >> it is becoming more common because the only protection really for these very sick patients, of course they get the flu shot themselves, but it's so surround them with people who have also been vaccinated, so before around 2005 hospitals didn't really care so much, they didn't really push this, but then they started to push it and look at these numbers. it really tells you something. so in 2002, only 38% of health care workers in hospitals were vaccinated. then they started pushing it in 2005 and telling people to get the shot, went up to 49%, and then more recently 67% as they started to get more aggressive and tell workers, look, you have a right to practice your religion and have your own beliefs but if you want to work here, you've got to get a flu shot and protect the patients. >> there are some for religious
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reasons and personal beliefs they do not want the flu shot, are there alternatives? >> sometimes the alternative is you lose your job. some hospitals have played around with the idea you have to wear a mask, day in and day out, eight hours a day when you're on the job. that doesn't work so well. first of all it doesn't protect patients as well and second of all can you imagine working eight hours a day with a mask on? >> it's tough. >> it's tough and people take them off. there isn't a good alternative to the flu shot. >> we'll see what happens with this and if there's any recourse for this woman who lost her job. >> my guess is there won't be. she's a health care worker. she has obligations to her patients and the hospital has obligations to the patients as well. she can practice her religion and have her personal beliefs, that doesn't mean she gets to work there. she maybe should find other work. >> we'll see, elizabeth cohen thank you. after months and months and months of talking about it, we have avoided the fiscal cliff. now what? no one is really happy about the solution, including the men and
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women who voted for it.
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in about 30 seconds the opening bell will ring on wall street. markets opening for trade for the first time in 2013, also the first day of trading after washington's late night fiscal cliff deal. let's bring alison kosik back at the new york stock exchange. we see here some applause and that may be echoed around the floor because we're expecting a rally, right? >> that is the expectation. [ bell ringing ] the opening bell ringing now. get ready to call this a fiscal cliff relief rally.
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expect to see a triple-dingity gain on the dow. the bigger question, will this rally last? stocks are more of this forward-looking indicator of negotiations over spending cuts and the debt ceiling, the market could be in for rough days ahead. it's the early days of the year that are important, a strong first five days of january almost always leads to gains for the year. it held true in 2012. the s&p 500 gained 13% for the year so we should only hope to see strong gains in the first five days of january. as the day goes on, looking at an 82-point gain on the dow for now. >> alison, we'll stay close to you and stand by, we'll check what the market is doing over the next 90 minutes. it doesn't matter what side of the aisle you're on. the fiscal cliff solution is making a lot of people unhappy. congressman peter welch from
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vermont voted for it last night, it's good to have you. >> thank you. >> something you said yesterday just before the vote "as a fiscal package going forward to stabilize this country, this deal falls well short." are you confident that as we move over to the next two months and start talking about the sequestration and the debt ceiling, considering all of the infighting we saw over the last few months, that we will get to a fiscal package that stabilizes this country? >> it's going to be very rough. that's the undone work so anyone who tries to claim this as a huge victory is overselling it. what is significant say couple of things and i give speaker boehner credit for this. he put this on the floor when he knew a majority of the caucus would vote no but a majority of democrats would vote yes. we have a bipartisan deal that is helpful in the short run. secondly revenues did go up on the top 2% and we kept taxes low on 98% and third after the dust
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settles this framework of finding a way where both sides are going to be able to vote on the floor is the only way we're going to get to be able to resolve some of these big issues that lay ahead for us. >> so considering the 16.8 or so trillion-dollar debt and the growing deficit you're getting about $620 billion from this bump in taxes for the top 2%. how close does that get us to where we need to be really at the end of the day in all of the discussion? >> nowhere near where we need to be. i mean, we have to have revenues as part of this, but we do have to have cuts. the pentagon's got to be part of that, and health care, this is where it's tough for the democrats. health care has to be part of this. that's not medicare benefit cuts. there's a lot of things we can do to deal with the high cost of health care in this country that goes up two or three times the rate of inflation, so having prescription drug price negotiations, that would save
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$160 billion, moving away from fee for service to more of a performance based system, things that we can make progress on that allow the american people to have access to health care but have it be affordable and sustainable but that's tough. >> all of the low hanging fruit is gone. if it were easy to do congress would have done it by now. >> that's right. >> so -- go ahead. >> it's true. the things that lay ahead that are really a challenge, largely is health care because that cost in the whole economy not just medicare is going up faster than we can afford. that's really the bottom line so how do we reform our health care system and bring the cost in line so it's sustainable? those are very difficult issues. the republicans in general have wanted to cut benefits, seeing that as a way to control costs. democrats in general wanted to have system reform and we've got to find a way to work together on that. the other thing is that some of the tactics like threatening to default on our bills, and that was the debt ceiling showdown
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that we had last august, that's unfortunately very damaging. it's an effective tactic but it has such negative collateral consequences for the economy that ideally we would have a truce on that and acknowledge that america has to pay its bills and there's no shortcut to the fiscal reform that we need. >> i don't know if we're necessarily going to hear or use the word truce over the next few months but i'm sure there are a lot of people at home wondering why when there's something important to be done every time we have to get down to literally the 11th hour with congress. why, and should we just expect this here on out? >> no. i mean american people i think are quite entitled to expect more from their congress. they should have confidence that on new year's eve they have a congress that's done its job and we hadn't done it. this brinksmanship is negative for the whole process but it does reflect how divided we are. president obama won the election. he said he wanted to raise revenues but the republicans who
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ran the districts ran on the platform of lowering taxes so this was a tough situation for them. they had to do something they knew the country validated with that election, but their own constituents said no, so there is a polar tug-of-war here that's going to continue. >> congressman peter welch, thank you for speaking with us today. >> thank you. coming up in an hour, we'll talk with republican senate john barraso from wyoming about what he thinks about the deal. the big city mayor applauds congress for reaching a fiscal cliff deal but urges lawmakers to do more. we'll talk to philadelphia's mayor michael nutter. art is what can't be proven math metically, where science ends, the part that makes you feel good but you don't know why, the way the object feels and looks and you can almost if it's perfectly created explain it to somebody else afterwards but in the creation part you can't. you can see how the glass is
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constantly moving. my job is to basically shape it. and balance it at the same time. you do that, you get these wonderful shapes, glass really rewards the risk. lot of times with glass you're waiting for the piece to cool down and temperature to adjust and split seconds where you've got a fraction of a second to make a particular move in a particular way and you don't get to repeat it if could you it wrong so there's a performance to it. it's sort of like dancing. you can't really think about it and do it really. you just have to do it enough that it becomes sort of mechanical, and then you can sort of free your mind to design. ♪
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a member of the paparazzi is dead after he was hit by a car while trying to photograph justin bieber's ferrari. bieber wasn't even there. cnn's nischelle turner is in los angeles. tragic story but from what we hear this guy was running across the street to take a photograph
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of a car and he wasn't, bieber wasn't even in it. >> yes, tragic, senseless, all those words you can come up with, victor. you know, photographs of justin bieber pretty big deal, particularly if it's another incident involving justin bieber getting pulled over in a sports car and the paparazzi are known for and i guess the only way to say it nicely, pushing the boundaries to try to get their pictures but certainly it is tragic to see someone dying over just trying to get a photo. particularly when news tin bieber like you said wasn't even in the car. cnn learned it was a friend of his behind the wheel of his ferrari but bieber did react in a statement to cnn saying "while i was not present nor directly involved with this tragic accident, my thoughts and prayers are with the family of the victim. hopefully this tragedy will finally inspire meaningful legislation and whatever other necessary steps to protect the lives and safety of celebrities, police officers, innocent public bystanders and the photographs themselves." victor, this one it's a little
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bit of kind of a weird situation because the photographer was not killed trying to get the photo, like you said, he was killed when he was trying to cross back over a busy freeway, and if you know that area where this is here in los angeles, it's the 405 freeway near the sepulveda pass and the getty center, and this is an area that's windy, there's a lot of blind spots there and it's a high traffic area so it just wasn't a good decision to try and cross the road there. there aren't any, you know, walkways for a pedestrian to cross. so it's just, it was just a really bad decision. >> that's unfortunate. stars have been calling for that legislation since the death of princess diana, and will continue to call for legislation. bieber has had a history of problems with the paparazzi, right? >> yeah, he's been the target for years of the paparazzi because he's so big and famous. he called the police after a high-speed chase with the paparazzi on a los angeles
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freeway a short time ago. certainly that incident does bring to mind like you said the death of princess diana, which was caused by a paparazzi car chase. there are laws on the books here in los angeles which are meant to prevent these high-speed chases of celebrities by paparazzi. if convicted they bring up to a year in prison and a $5,000 fine for each count of breaking traffic laws while pursuing a celebrity, but the problem with this, victor, is it's not necessarily not having the law, it's the enforcement of those laws and you know, being out here covering entertainment we see these kind of things happen every single day where paparazzi are chasing celebrities and surrounding them just to get a photo. >> and it's not worth it especially when you're putting your life on the line. >> absolutely. >> nischelle turner out in l.a. for us, thank you. >> sure. >> nischelle will be back next hour to talk about how the fiscal cliff of all things will help holly pood save millions of dollars. michael nut ear plauds congress for reaching a fiscal
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cliff deal but urges lawmakers to do even more.
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15 minutes before the top of the hour. in about three hours pennsylvania's governor will announce a lawsuit over ncaa
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over stiff sanctions it impoetzed on penn state university, following the child sex abuse scandal involving the school's former assistant football coach jerry sandusky. the ncaa fined penn state $60 million and stripped the football program of 14 seasons of victories. a fun new year's tradition with serious overtones, about 200 people took part in a polar plunge in north carolina, the event raised funds for a local charity and touched on the shooting tragedy in newtown, connecticut. the polar bears signed a large card to send to the town. secretary of state hillary clinton is still in a new york hospital this morning after doctors discovered a blood clot between her brain and skull right behind her right ear. she's being treated with blood thinners and expected to be released after doctors set her medication dosage. her daughter chelsea tweeted a
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thank you to all for sending good thoughts my mom's way. grateful to all her doctors and that she'll make a full recovery. four masked and armed robbers hit an apple store in central paris, making off with as much as $1.3 million of merchandise. now the robbers entered the ore afterhours on new year's eve while police were focusing on areas with revelers, people celebrating. the robbers loaded iphones, ipads and laptops in a van and sped away. we are keeping an eye on this rally that we're seeing on wall street up 222 points if i'm looking at the board correctly after the deal on fiscal cliff and philadelphia mayor michael nutter has been a strong supporter of president obama during the recent presidential campaign and on the president's plan to deal with the fiscal cliff. now, with congress reaching that
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deal, mr. obama is sending out a warning to those lawmakers. michael nutter joins me now. welcome, sir. >> victor, thank you. happy new year to you. >> happy new year to you. you urged them to do more. what worries you most about the next two months as we move into this phase of talking about the sequestration and the debt ceiling? >> well, victor, as much as it's recognized that congress did ultimately take an action that was necessary, i mean this has been kind of one heck of a start to this year, it raises concerns about how they deal with the rest of the business still at hand. the president made clear, stuck to his principles and for the if, time in two decades we see placed into law that tax rates will go up for millionaires and billionaires. the president said he would do that during the course of the campaign. it wasn't just about a campaign. it was about a fundamental
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principle, and got that accomplished, and at the same time ensured that middle class taxpayers would not see their taxes go up, and possibly send this economy into another recession. and so certainly those are important points and the president should be recognized for getting it done and sticking to his principles about that. this was past the 11th hour, if you will, in terms of work that needed to have been done a good while ago. the president also made it very clear, crystal clear that he will not negotiate something that is as straightforward as raising the debt ceiling limit. the bills have been incurred. the united states has to stand behind decisions already made. the president is not going to allow this nonsense from the summer of 2011 that we 2011 than as the debt ceiling issue go forward, but we still have the
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sequestration cuts that were. >> that's wishful thinking that the president is not going to negotiate with congress on the debt ceiling. that is going to inevitably happen and probably is starting today, right? >> well, i think the president has been very, very clear about that. certainly that won't prevent people from trying. it's the united states. people can say and do pretty much whatever they want, but look, the debt ceiling has been raised i think 30-plus times going back to when ronald reagan was president. there were no big dramatic negotiations. if people need drama, they should just watch more television. this is people's lives. it was about unemployment insurance. 2 million americans who lost their jobs through no fault of their own. their benefits stay in place. the members of congress are not worried about unemployment
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insurance. they have jobs, they have health care, so these are serious matters that affect people. the president kept in place tax credits for children to send their children to college and benefit companies for research and development, but we still need to make investments in infrastructure, in research, in education, and certainly taking steps to make sure our children are safe. so this was important to get done. we need it done in a business-like fashion, straightforward, a little less politics, a lot more policy and work on behalf of america, not just party philosophy or jockeying for future position, mid terms in '14 or who is running for president in 2016. americans are still hurting now. and congress has the responsibility to take on these great challenges, do it in a straightforward manner that people can understand what in the world is going on. >> philadelphia mayor michael nutter, we will see how this
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continuing over the next few months as we go through the debt ceiling and sequestration and continuing budget resolution. thank you, sir. >> we will all be watching. thank you. northern illinois, doubters are saying, i told you so. florida state runs away with the orange bowl game. we'll talk about that.
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this just into cnn, president obama has just landed in hawaii. he headed to the island right after a deal was sealed on the fiscal cliff late last night. you heard the president speak late last evening from the white house. just before 5:00 a.m. there. we're still waiting to find out actually when the president will sign the bill that was passed by the outs last night. also our dan lothian was on air force one with the president, again there it landed in honolulu. we're expecting to speak with him living coming up in our next hour. well, cinderella did not show up at the orange bowl last night. the judge dog that did, northern illinois, kept the game with florida state close for most of the first half before the seminoles took charge and won 31-10. mike peska joins us. hey, mike. >> hello. >> from the time the bowl
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invitations went out, there was a huge outcry that northern illinois was not ready for bcs primetime. did we just see proof of that? >> yeah, they want northern illinois wasn't athletic enough, didn't have the horse toss compete with a big-time team. the stuff they ran in the m.a.c. wouldn't work gentz a beg-time team. they played with a lot of heart and savvy, all that. it doesn't matter when you're facing athletes that much better than you. the trick plays worked, they had a fourth down fake punt that worked, their coaching was good. just simply the 22 guys on the field, the best would be florida state. it's a formula for losing. let's talk about stanford. big day for them. they won their first rose bowl game in 41 years. i guess really no huge deed for andrew luck, right? >> maybe with andrew luck they
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could be the national champion, that's how good he is. wisconsin a very ground-oriented team. you wondered when they felt behind early, would they be able to run and keep up. they were. they were able to turn it into a good game. we don't have the overnight ratings yet, but we do notice the ratings have been down recently in viewers. why are we see the drop-off? >> there's a lot of bowl games, but even if the ratings for new year's itself is down, the bcs championship game will get a huge rating. even though that niu versus florida state game was bad. there was a good game in the outback bowl. the rose bowl was pretty good. so i think the people who are programming these bowl games just like having when what in television is called an inventory. everything is gravy. they're not paying that much for the lesser games.
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whatever advertising dollars they get from that, they're happy to rake in. it's sort of everyone wins except the schools that have to pay the top prices. so sometimes they're committed to buying 11,000 tickets, when you go on stubhub and can get the same tickets for literally $5 each. >> mike peska, thank you. the next hour of "cnn newsroom" begins in two minutes. i don't know. eight, ten years. i couldn't tell ya' but things were a lot less expensive back then. if you're 50 or over you should take a new look at your auto insurance. you may be overpaying. actually that makes a lot of sense. old policy. old rates. and thanks to your experience behind the wheel, you might save $350 by switching to the aarp auto insurance program from the hartford. plus, you'll get benefits that reward your driving record,
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i'm gonna call. i'm calling. i'm calling. i'm calling. call today and make the switch to the aarp auto insurance program from the hartford. why wait? happen now in the newsroom, dodging the fiscal cliff crisis at least for now. but with all this talk about spending less, why are lawmakers giving millions of dollars to businesses that are already thriving. we'll show you who is cashing
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in. another winner from last night's deal, wall street. markets are soaring. they told you to basically drop dead. that's how one new yorker is reportedly characterizing the house after it ended the session without sending any sandy relief to the northeast. >> everybody played by the rules except tonight and the rug has been pulled out from under us. >> we'll talk to peter king, "newsroom" starts right now. millions of other americans say they're paying a horrible price for all that consuming drama on capitol hill. they're the victims of superstore sandy. they were blindsided when the house republican leaders wrapped up the session of congress
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without voting on billions of dollars of aid. lawmakers from the hard-hit areas of northeast were quick to condemn the gop decision. >> everybody played by the rules except tonight, and the rug was pulled out from under us. absolutely inexcusable. we have a mosh obligation to hold this sfm vote. the people out of their homes, the people who are cold, without food, they don't have the time to wait. >> disaster knows no boundaries. this body has acted with speed and compassion to help americans throughout the country in disaster after disaster. dysfunction, mr. speaker, in this congress shouldn't result in punishing victims of sandy in new york, new jersey, connecticut and pennsylvania. this is a sad day. >> we just heard from peter king and the republican congressman joins us now from capitol hill. sir, you represent part of long island that was really hit heart by the storm.
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i was there after sandy hit. people lost their homes, their businesses, they lost friends and relatives. tell us, how significant this delay is for the people you represent. >> it's absolutely devastating, and what was most galling about this is that within ten days of katrina, we gladly voted $60 billion and went over $1 billion ultimately. it's now nine weeks since sandy struck on long island, new york, new jersey, we have not gotten a penny from the united states consequence. we've played by the rules, as i said in my speech last night. governor christie, governor cuomo, blame yor bloomberg we met with eric cantor, who by the way kept his word throughout there, and the bill was drawn. it was supposed to come up thunderstorm this morning. and last night the speaker of the house of representatives walked off the floor, didn't even give us the courtesy of a notice. he told's aide to the majority
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leader who told us, we end ended up telling -- so there's some dysfunction in the republican leadership. for some reason the speaker is taking it out on new york, long island, new jersey. we want to continue this conversation, but i want to go to the house floor, congressman steny hoyer is speaking about it. >> we had to borrow that money, yes, just as if the dpurns went out and the temperature was at zero, you would immediately replace the furnace to keep the family safe and borrow the money to do so. yes, we would have had to repay it, and we would. thisably would have allocated $6 mill quote-unquote for a food banks to make sure that people in the richest country on the face of the earth have some sustenance for them and their children. i saw an area of breezy point where more than 100 homes were devastated by fire when an
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electric transformer malfunctioned. the many firefighters who lived in that neighborhood could not get additional help from surrounding boroughs due to severe flooding. they battled mightily, saved many lives, but there is little left, indeed none of their homes. i saw local businesses, mr. speaker, which had been there for year. >> we've been listening to the democratic whip, steny hoyer, talking about the need for funding for people affected by superstorm sandy. let's go back to new york congressman peter king and talk about the gop leadership. as you were answering the first question, you said that representative captor and others members of the leadership held up their end of the bargain the one person you did not mention was speaker boehner. do you blame him outright? >> he refused to tell us why, give us any indication of warning whatsoever.
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eric cantor met with us through the week. he devised the strategy how to bring it to the floor to make it acceptable, to let reps who wanted to vote against certain parts of the bill they could do that, but the bill was going to pass, but listen, the bottom line is the republican speaker walked off the floor without allowing a vote. these republicans have no problem finding new york when they want money. they sent governor christie around the country raising millions for them. anyone from new york or new jersey who contributes one penny to the republican congressional campaign committee should have their head examined. i'm talking about the people in the neighborhood, people out of the homes, living in devastated homes. people who have lost their -- all that a lifelong possessions is absolutely disgraceful. i have to go back now, this weekend i'll be telling these people why the congress of the
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united states refused to give them the food and shelter that every other region has gotten. i gladly voted when it came to knit other state that had a natural disaster. that's the responsibility of the federal government. people in my party, they wonder why they're becoming a minority party. they're writering off new york, new jersey, they've written me off and they'll have a hard time getting my vote. >> you say this is even worse, because you're a republican. is this enough to make you leave the party or switch parties? >> no, i'm going to do what i have to do. i'm independence-minted. sometimes as john kennedy said party loyalty demands too much. often you give the benefit of doubt to your party, but i'm over that. at the very least, ear expected to be treated fairly. nobody wants a special favor or looking for a gift or mark, but when your people are freezing in the winter without food or
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shelter and my own party refuses to help them, why should i help the party? i'll stand on the truly republican principles, but turn your back on people freezing, is not a party value. this is from house appropriations chairman howe rogers. he says, fema has plenty of money, there's no immediate need. he says that fema has enough money to last until at least late february or march, anyway. >> first he doesn't know what he wang to talk about, and secondly hal rogers has no problem coming to new york to raise appoint money. the fema money is not going to rebuild businesses, it's not going to provide fooled and shelter. it's not going to reimburse the local governments that is not
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paid for by fema. that is why you need the special time of community development block grand that governor christie wanted. that's the money you need, not the fema money. yes, that's needed, but that's what you need in time of disaster. that's why in the bill, $33 million documented down to the last money. hal rogers can suck um if he wants to, but then raise your money down in kentucky. >> will you vote to have speaker of the house for the next session? >> i'm going to -- every vote that you cast from now on, i'm going to wait until the last minute to decide, how it would affect my region. my obligation is to my constituents, not to any individual or party. it's my country and my constituents. >> would it be fair to interpret that as you have not yet decided
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if you will vote to elect john boehner as how speaker? >> farce i'm concerned, my world turned upsidedown last night, so i'm holding every vote in abbian for now. >> have you spoken to the speaker's office -- >> i was chasing him all over the house last night. he said wait until the vote is over. wait until the fiscal cliff vote is over, everything will be taken care of, and then he was gone. he yelled i'm not meeting with you people. so he wouldn't tell us why. he decided to speak off -- >> you're saying that he yelled at a fellow congressman saying i'm not going to speak with you people. >> right. absolutely. >> what would you say to the people who are sitting at home or sittic at some place they are now calling home because they lost their homes, what would you tell them about the house body and your party, the party you've
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been a member of for many, many years and how they have been let down, in your view, this session? >> i would say the republican party is a party of family values. last night it turned its back on the most essential value of all, to provide food, shelter, clothing and relief for people that have been by a natural disaster. i would say the republican party has turned its back on those people, and it's very hard for me to ask any of those people to vote for the national republican party. certainly i hope they vote for me, because i'm doing the job that i need to do, but i'm thoroughly disgusted. i think seats in the northeast were lost last night, to put this in political term, there are a number of reps who can make kiss their seats good-bye, not because of what they did, but what was done to them. if you can't provide the most basic services to your district, why do they need you in the congress? they talk about an image
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problem? this is a reality problem they have. >> talking with peter king of new york, representen an area that was devastated by superstorm sandy. i want to continue this conversation, but we're going to take a quick break and then come back. i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare.
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we're continuing our conversation with new york congressman peter king about his just outrage that a by was not put on the floor for a vote to get $60 million to the people who need it most. you talked about the discussion
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of how this would come to the floor, that you had already talked about this. was speaker boehner a part of this plan? >> when you meet with the majority leader, he is the agent of the speaker. he said he's spoken to the speaker and met with him in his office. i think eric was totally honest with us, legislation was drawn, it was done in such a way there would be two parts to it, the legislation was on the committee website, scheduled to come up yesterday and scheduled to come on today, and as far as all my meetings with the speaker, i met with governor cuomo, the speaker said don't worry, we'll take care of it, there will be no offsets. we have to get this through and take care of the disaster relief. and whenever i would go to the speaker, he would say, everything is fine. i told john, there's rumors
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going on this won't go to a vote. he said, don't worry about it, everybody will be fine. >> when did you have that conversation in which he told you everything would be fine and when did you start to hear these rumors that it could not come up for a vote? >> i first heard the rumor about 6:30 last night when eric cantor said, what time is the supplemental bill coming up? he said, well, it's up to the speaker. i said, but eric, you said it was coming up. he said, the speaker hasn't given the green light. that's when i started to realize there was ping-pong going on. eric cantor i believe said the speaker wouldn't give the green light, so later about 9:00, ed, john, we're hearing that it's not coming up. that's when he told me, everything will be fine after this vote, but later when the congressman wanted more assurance, and i was told by people who observed it that the speaker yesterday out, i'm not
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meeting with you. and then he just left. >> i you this decisions up to the point where you say that speaker boehner said i'm not meeting with you people and left and the days and weeks up to what would happen, do you think those were in good fath. >> now i have to wonder. i have to wonder. again -- the speaker expressed reservations about the bill, and he left and that's why the legislation was drawn, we took on the anything in there that they felt was not directly related to hurricane sandy, was for compliance, and all i can say is maybe -- there is a bias in the republican party against new york or new jersey, with all the pressure of the fiscal cliff, that was just felt that why have extra pressure. they would rather throw new york
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and new jersey overboard and keep of rest of the party together. it makes no sense. i've been in politics 35 years, in rough politics with new york. i can play as hard as anyone else, but what i saw in the last day, if somebody wants to removed me from something, that's part of the game, i can take care of myself, but i can't stand seeing thousands of my constituents treated the way they were, and not just my constituents, the whole northeast. it's devastation. when you go to the areas, talking about mass apeek what, jersey shore, staten island, congressman grimm's district, and again congressman grim, lobiando, all working with the leadership all week, and we were told everything was on board, everything was ready. we had lined up the votes we
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have done everything we were asked to do, and again the knife in the back. that's all it is, because they're saying they're going to vote on it in january, that's nonsense. we're going to be into february, and even then if they wouldn't give us the $16 billion last night, what makes us more confidence they'll give it to us. meanwhile, the people are freezing and starving. that's the reality. >> is there any recourse with the few hours left of this session, anything that can be done to get money to people in the northeast. if you say february, march, april until you get something, do you believe that money is coming? >> i think some money will come, but not enough. talking about fema and floor
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insurance money, which you're entitled to anyway. money needed for rebuilding, needed to reimburse the local governments for the massive costs that he incurred. it will end up bankrupting governments in new york, long island. governor cuomo's budget cannot handle it. governor christie, i don't know what he's going to do in new jersey. there's an angry man, after what he did for the republican party. this should not be republican or democratic issues, but if these guys want to use new york and new jersey as cash cows, third realize those days will be over. peter king representing part of new york devastated by superstorm sandy using the term "knife in the back" when the speaker walked away from congressmen saying i'm not going to talk to you people as it relates to superstorm sandy funding. thank you, sir, for speaking with us. we'll of course follow it.
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the lack of funding aid is not the only thing that's causing anger this morning. there is a ton of pork attached to the fiscal bill, and we're going to go through that, too.
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in the america taxpayer relief act, that's the fiscal cliff deal, buried is pork, millions in tax breaks. first off, hollywood, $430 million in tax breaks to tv for film production companies in the u.s. to foster production project. also cashing in railroads, $331
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million, the tax credit is tied to maintenance of the tracks. p weather rho rico and the virgin aisles will see millions returned. they were collected on rum produced there and imported to the mainland. and nascar will get a windfall. $70 million. everything from help for hollywood to refunds for rum, christine romans, we have invited christine back to speak with us. anton shatz, i know there's a lot of it that just makes you want to scream. >> probably the motorsports entertainment complexes get a tax break. cellulosic biofuels. we haven't produced them xhemplly even though there's a requirement to do so, and the
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television industry, record profits at the movies, certainly television, these are the kinds of things that should not be in a bill that's addressing a greater need related to tax rates. they just get extended year after year without much thought. >> we all know hose these things get in here. senator mccain said these are always like christmas trees. the question is, why do we hear about them after the thing has already been passed. that has to be frustrate iing that's the big issue. they come up once a year as an extension, again there's not a lot of discussion, not really open hearings that everybody knows about, so they also get lost in the larger piece of legislation, in this case stopping the fiscal cliff with the tax extensions. so, you know, in washington what's a few hundred million
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here and there? three provisions, by the way first rated or expanded in the stimulus, $134 billion. those are provisions that were supposed to expire. >> and christine, jump on in here. >> you know, there's one thing, a bonus depreciation clause in here, extension of bonus. one person could say that's corporate welfare. why are we giving corporations money, but when you talk to people watching wall street and corporate america, they say maybe this will get dismiss money off the sidelines and create some jobs. some of these things are glaring, and they're ugly, and this is the political process, and on the one, i'm asking people about them. they're not as outraged as you would think. they say, well, maybe it will get money moving.
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for why it's not pork in their case, but this shows you even when we're talking about a new era, a new era where we'll try to be response in our federal budget, we still have the same old games. >> hey, tom, the next phase, we've done taxes now we're going to tackle spending. are you confident there will be serious spending cuts as we move forward over the next two months? >> there have to be. not enough money, quote/unquote, was included in the tax bill for offset the increase in the deficit. this is where the big issue lies. all of these provisions make it more difficult to reform and simplify the tax code. the spending side, there are hundreds of billions in duplication and overlap that's been identified.
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we have over 200 programs for science technology and math, no one which knows which of those works, and a third of those have been added in the last five years, so democrats and republicans alike are responsible. it has to get under control. >> thank you both. this conversation, of course, will continue. a lot of congressional republicans broke ranks with their party values in order to get the fiscal cliff deal done. we'll talk to one of them after the break.
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bottom of the hour, let's check the top stories.
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the house has avoided the fiscal cliff, but it has also avoided superstorm sandy. the house adjourned last night without voting on a bill that would have sent billions to help recovery efforts across the northeast. the senate approved a $60 billion bill last week, but the house decided not to bring up any other legislation. just a short time ago, i spoke with new york congressman peter king. he places the blame squarely on the shoulders of house speaker john boehner. >> he walked off the floor, he refused to tell us why, give us any indication of warning, and eric cantor met with us throughout the week, he devised the strategy how he would bring it to the floor to make it acceptable, to let republicans who wanted to vote against certain partments of the bill, they could do that, but the bill was going to pass, but the bottom line is, the republican speaker walked off the floor without allowing a vote. i'm just saying these people have no problem finding new york
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when they're trying to raise money. they raise millions in new york city and new jersey. they sent governor christie around the country raising millions. i'm saying anyone who contributes one penny to the republican national campaign committee should have their head examined. i would give them not one penny based on what they did last night. >> house appropriations chairman hall reasonab hal rogers is not concerned. he says the federal emergency management agency, quote, has enough money to last until at least late february or march anyway. aside from that missing money in your paycheck, people are noticing a lot of missing coop on the hill. here is peter welsch on our show, describing americans' frustration with this divided congress. >> they should have confidence that on new year's eve they have a congress that's done its job.
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he hadn't done it. the brings manship is very negative, but it does reflect how divided we are. >> some in washington were able to come together and make that vote happen. we did get a dizzy done last night. senator john inbarrasso is here with us. >> taxes were going up on all americans on january 1st, and we made permanent the bush tax cuts for 99% of americans. what the president wanted and did not get as part of this deal was he wanted to raise the debt ceiling. that's going to be the next debate and fight on capitol hill, because the president has maxed out his credit card, and he is not going to get an
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unlimited credit card. we're going to talk specifically about cuts and specifically focused on tax reform as well as helping to save and strengthen medicare and social security. that's the next discussion we'll have in washington. >> what president republicans wanted and did not get was to keach the bush era tax cuts in place for everyone, and also to have some guaranteed spending cuts as part of the conversation of taxes, hand in hand at once. are you confident that these cuts will come? what we hear from house republicans so many times and from senate republicans, is that the cuts never come. >> well, on january 1st, tax rates were going up on all americans, but now if the president wants the congress to vote to raise the debt ceiling, there is going to be keyed to that specific cuts long term in the sbhiltment programs. face it, 10 thousand baby
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boomers today turn 6 on. 10,000 yesterday, 10,000 will tomorrow. we had need a growing economy and a program set to make sure that these long-term entitlements are there for the next generation. the president the night he was reelected said he didn't want children to grow up in a country burdened with debt, yes he's done nothing to deal with the debt. he sort of campaigned on the idea that if you raise taxes on just a few, it will solve the problems. it has not solved any of the problems. all it has done is dealt with about seven days of spending over the course of a year. there's still the other 51 weeks that need to be dealt with. earlier on cnn, representative jeff landry acknowledged some political infighting within the party. dodds that happening? pinches i see republicans united, united on the issue of cutting spending.
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the president is addicted to spending, as are the democrats in congress. the president talked about the debt ceiling, and he said he wasn't going to not pay the bills that congress has passed. i would remind the president these are for programs that he was the one that instigated. it's his health care law. i'm a doctor. that law continues to be unworkable, unpopular and unaffordable, and it's the president's stimulus package that i believe was a failure. >> well, many of the bills do predate 2008, but unfortunately we're out of time. i wished we could talk more. senator barrasso, thank you. >> thank you, victor. alison kosik is at the new york stock exchange. 250 points many on the day, alison. >> how long will the good feel last? we'll be back after the break.
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it's been less than 12 hours, and investors are getting a chance to weigh in. here's a look at the big board. 240 already up on the day. alison kosik is at the new york stock exchange. alison, is this about what the investors expected to see? are we above or below where we expected to be at 10:39 eastern? >> it's right where we expected to be, right where investors expected to be. huge gains to kick off the new deal, here's what's funny.
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for as long as it took for lawmakers to reach an agreement, one analyst says congress has done the easy part. now comes the hard party, reducing spending and increasing the debt limit. so the question becomes how long will this good feeling last? with one trader warning at this point buyer beware. this morning the buyers are far outbuying the sellers. let's talk about the payroll tax hike, rather. most americans aren't sees a tax hike, but most will see the paycheck shrink because of the payroll tax. let's talk about that. >> right, because the payroll tax holiday is over. that means your paycheck will get smaller let's say you make about $250,000 a year, that means $83 less out of your paycheck. but you know what there's also
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plenty of up side for your wallet. the deal prevented the alternative minimum tax from expanding. that will keep most middle class tax refunds right where they are. most people won't feel a change in incountry talkses either, but it's a different ball game if you make more than $400,000, but mo foals people it's a nibble over a shark buy. despite raking in a record last year, hollywood will still get major tax breaks, and it's your tax dollars.
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the fiscal cliff bills has some -- keep in mind hollywood
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raked in $10.8 billion in ticket sales last year, a new box office record. some stars were very supportive of president obama during the election, for example sara jessica parker. >> okay. the guy who ended the war in iraq, the guy who says you should be able to marry anyone you want, and the guy who created 4 million new jobs, that guy, president obama and michelle are coming to my house for dinner on june 14th. i want you to be there, too, because we need him, and he needs us. >> i'm just going to come to you with a one-word question. what -- >> i can sigh the eye roll and people sucking in the breath. i understand the initial reaction, but don't be fooled by the celebrity factor. hollywood is a business like any
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other. according to the motion picture association of america, 2.1 million people got up this morning in the united states, went to work at a job dependent, not a direct hire, but dependent on the film and television industry. that's an important number. there's a lot of competition for those jobs. frankly there's no guarantee they will stay in the united states, because, you know, people used to think television production would always stay in california, but other states started competing for those jobs. last year, listen to this, when the new season rolled out of the, you have 23 new network shows -- according to "los angeles times" -- only two of them were shot in los angeles county. these major studios are parts of multinational corporations, who are not shy about outsourcing. we have seen plenty of shows, like canada, take advantage of exchange rates and tax breaks.
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earlier christine romans said this to you, and i thought it was spot on. she said one man's pork is another man's job creator. that's exactly what it seems like we have here. >> certainly pork when somebody else is eating it. you mentioned canada. which other companies are competing? >> countries like new zealand, actively competing, "the lord of the ring" series, "the hobbit" they have been windfall foss that country. according to "new york times," warner bros. spend an estimated $500 million in new zealand on the hobbit movies alone. to get that kind of business, they have reworked some of their labor laws and subsidized films like "the hobbit" with a reported 67 million new new zealand tax breaks, that's the support that's turned it into a
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major center for film makers. also china, we're seeing a lot of competition from there as well. >> nischelle, thank you. >> thank you. the new law that's catching some by surprise. we'll talk about that next.
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so we all have our cinematic pleasures. take the movie "mean girls" funny if you're 15, but embarrassing if you're 45. maybe your friends don't need to know you've streamed it nine times in the last month, but that could change. congress passed a law making it easier for sites like netflix and hulu to share your entire rental history. eric, this is another story about netflix, one, but you're pretty critical of this new prospect. what's at stake here? >> well, whenever users' privacy is encroached upon, i think we always want to be careful about it. the only thing that concerns me is netflix is talking about using facebook to share
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information with people inside your friends' circle, so you can let them know what you're watching, but netflix has a history of not being as sensitive to its consumers' needs and wishes as it could be. and facebook is notorious for changing privacy settings, and changing how privacy areas work without adequately informing the users. you sometimes get surprised with the level of information shared with people in your circle or even with the general public. i hope people keep an eye on this, and both companies do an adequate job of letting people know what information is available and when it becomes available. >> this isn't totally unprecedent unprecedented netflix tried to implement some social sharing
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aspects to its service years ago, and was sort of dissuaded from doing so by legal hurdles. there's been laws on the books against sharing people's rental history for years, connectwood robert bork when he tried to become a justice and his rental laws were shared with journalists. this recent change in legislation sort of changed all that, made it easier for social and digital sites like netflix and hulu to use social media to share people's information. a lot of people will have fun on sharing their favorite tv shows or movies they watch. my only question is people should know and have full control of what information they're sharing and when this stuff gets implemented. so we have to keep a close eye on this. eric, thank you, we'll see what happens with this new law.
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sports caster hannah storm returns to the air just three weeks after being burned in a propane grill accident. she talked about the moment when her clothes caught fire. people really love snapshot from progressive, but don't just listen to me. listen to these happy progressive customers. i plugged in snapshot, and 30 days later, i was saving big on car insurance. with snapshot, i knew what i could save before i switched to progressive. the better i drive, the more i save. i wish our company had something this cool. you're not filming this, are you? aw! camera shy. snapshot from progressive. test-drive snapshot before you switch. visit progressive.com today.
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just in. house speaker boehner says he'll make a bill on superstorm sandy a top priority, but not until the next session. some lawmakers, including fellow republican peter king of new york, called the sleight disgraceful. the best moment of yesterday's parade, an army sergeant deployed to afghanistan stepped off a parade float and surprised his wife and little
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boy three months early. the military was in on it. it took a lot of planning. after army sergeant eric paz told his family he won a contest for an all-expenses paid trip to the parade, they traveled from her home on a base in germany to get there to meet him. great moment. rose bowl parade viewers took in another emotional moment with the return to air of hannah storm. she hosted the show with josh elliott. storm was back at work just three weeks after suffering first and second-degree burns in a probay gas grill accident. >> i didn't know what to do other than i've left-handed, reach and get the shirt off as much as possible. that's why my hand is so damaged. yell inside to my 15-year-old
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daughter, mommy's on fire, you have to call 911. i cannot imagine. she looks great. elizabeth cohen is back with us. first and second degree burns. how serious, how do you treat these? it's unbelievable. she's being really open about this. >> it's so wonderful she's being so open. people do need to be careful when they're grilling at home. it's wonderful to see how well she's doing. first and said degree burns are serious. we can see here it's no little thing. you see i think those are probably scars from the blisters, that intense redness. this is over a pretty significant part of her body. she does absolutely the right thing. you don't want to treat this at home. you caught 911 to get medical attention immediately. >> she's back after three weeks off from this burn. she has said she wanted to kiss
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the makeup artist, but she looks great. is this level of recovery so soon typical? i want i think she really is doing terrific. to come back after three weeks, she looks like she's full of energy, even after having gone through this incredible trauma. i was talking to a specialist that people have done this. if the burn is treated mealy and treated well. it sounds like they got terrific care at a place that specializes this, you can come back, but other people aren't so lucky. >> aside from the physical scars, there are lots of emotional scars, not just for her, but follows her daughters. >> can you imagine being 15 years old and hearing mommy is on fire? what a great 15-year-old. she obviously got to work, got on the phone and called 911, yes, this is a different things to get